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Connells’ profits and turnover dip, latest results show

CEO David Livesey is pleased with Connells' performance and, despite the Brexit-based downturn, plans organic and acquisition-based growth.

Nigel Lewis

Picture: Kremer Signs

 

Connells has restated its commitment to the company’s 600 branches and 7,000 staff and revealed that it intends to expand through acquisitions and organic growth despite a patchy performance during 2018.

The company has also once more dismissed hybrid/online only agencies following the closure of Hatched last year, saying they do not produce a ‘viable economic result’ nor give vendors the ‘best outcome’.

Its latest results reveal that during 2018 the company’s sales were 7% down on the year before, helping push down its revenues by £5 million to £75 million. Profits were also down by nearly £10 million. Connells’ operating margin also slipped, although only by 1%.

David Livesey, Connells, imageCEO David Livesey (left) says the business performed well despite “Brexit uncertainty continuing to weigh heavily on customers’ minds and depressed levels of UK housing transactions”.

There was better news from elsewhere in the business. Income from its mortgage division increased by 10% and from its lettings activities by 5% while its surveying division increased its turnover by 4%.

“Our core estate agency business performed well and we continue to benefit from a strong and diverse business model which is resilient to market change,” says Livesey.

“We are pleased to deliver another good performance and our results reflect the quality of our people and the flexibility of Connells Group to respond to all circumstances.”

The CEO also referred to recent investments in tech firms including, as The Negotiator reported in October last year, its backing of sales progression tool MIO. It has also backed alternative deposits firm Zero Deposits.

 

February 28, 2019

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